TechCrunch just published a terrific introduction to our newest Founders Co-op company: RevenueLoan. Andy and I got excited about the idea of royalty based finance for early-stage companies more than a year ago and have experimented with the structure in our first fund. As we worked through the details on these deals we realized that there was a much bigger opportunity out there than we could tackle “on the side”. With the help of local institutional investors Voyager Capital and Summit Capital, we now have a vehicle dedicated exclusively to this approach.
As scrappy, dilution-averse entrepreneurs ourselves, we love this approach to growth financing for successful early-stage companies. Between TechStars at the earliest stages, Founders Co-op at the seed stage, and RevenueLoan for profitable and growing companies, we now have an investment offering for bootstrap-minded entrepreneurs at every stage.
Congrats to Andy, Randall and the Voyager and Summit teams on a great new offering. If your startup is doing ~$1 million a year in revenue, running at or better than breakeven and needs a little growth capital to really take the next hill, you should definitely give them a shout.